BCS World of Investments stock market expert Dmitry Babin said that in the morning, at the start of trading, the ruble rose sharply against the yuan to 11.66 rubles. After that, it began to lose ground and quickly weakened.
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The reaction to the expected decision of the Central Bank of the Russian Federation to raise the official interest rate to 18% caused a downward trend. At the same time, the Bank of Russia not only did not announce the end of the cycle of monetary policy tightening, but also warned about the likelihood of similar decisions in the future. The forecast for the average rate for 2024 and subsequent years was increased.
These decisions are usually the main underlying factor supporting any currency. However, according to the expert, for the ruble the key factor in the exchange rate dynamics are currency flows related to foreign trade.
“So far, there are no signs of changes that could significantly upset the balance between demand for currency and its supply, which kept the ruble relatively stable in July,” Dmitry Babin said in a commentary for RB.RU.
Following the Central Bank’s decisions, the ruble quickly recovered, but then plummeted again and found itself paired with the yuan with symbolic losses.
If we talk about official exchange rates over the weekend and on Monday, the dollar rose by 15.5 kopecks to 86.57 rubles, the euro gained 9 kopecks to 93.26 rubles, and the yuan lost 1 kopeck to 11.73 rubles.
As for the Russian debt market, it resumed its active decline. OFZ quotes were pressured by signals from the Central Bank about a possible further increase in the official interest rate.
We wrote earlier that the Bank of Russia today significantly revised its inflation forecast for 2024 and raised it to 6.5-7%.
Author:
Nikolai Tikhonov
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
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